Federal Budget 2025–26: What Every Australian Business Owner Should Know

The Australian Government has released the Federal Budget for 2025–26. It includes new support for households and businesses. If you run a small or medium-sized business, there are a few important updates you should know.

As a small business tax accountant, RV Advisory Group helps business owners understand how changes in the budget affect tax, cash flow, and day-to-day operations. With expertise in tax accounting and personalised Accounting Services, we’ve broken down the key budget updates in a way that’s clear, practical, and relevant to your business.

Running a business comes with a lot of costs, and electricity is one of them.

The government is now offering up to $150 in energy bill relief for small businesses. This amount will be taken off your electricity bill automatically if you qualify.

What you need to do:
If your business is already listed with your electricity provider as a small business, you don’t need to do anything. The rebate should apply automatically.

The $20,000 instant asset write-off is staying for another year. That means if your business buys something like equipment, tools, or machinery under $20,000, you may be able to claim the full amount as a tax deduction right away.

This is a great way to manage Tax Planning while reinvesting in your business.

Important:

• The asset must cost less than $20,000
• You need to use it or install it before 30 June 2025
• Your business turnover must be under $10 million

Speak to a registered tax agent or Tax Advisor to ensure your purchases qualify.

The government is offering grants of up to $25,000 to help small and medium businesses improve their energy use.

You could use the grant to:

• Replace old air conditioners or heaters
• Upgrade fridges or freezers
• Improve lighting
• Install better insulation or windows

This helps you save on energy costs in the long run and reduces your environmental impact.

What you need to do
Applications will open soon, so check your eligibility and start gathering your paperwork early. Need help? RV Advisory Group offers Business Advisory Services to guide you through the application and planning process.

The lowest income tax rate has been cut from 16% to 14%. This doesn’t directly affect business tax, but your employees may take home more pay. That could boost consumer spending and help your business too.

If you own a brewery, distillery, or other alcohol-producing business, you can now get more back through the excise tax refund. The cap has been increased from $350,000 to $400,000.

The ATO is getting more funding to improve its systems and crack down on tax fraud. There’s also more focus on making sure business owners have registered Director IDs.

Tip: Make sure your business records are up to date and that your TFN registration, ABN, and Director ID details are correct. If you’re unsure, RV Advisory Group can assist with compliance checks and ongoing support.

A big change is coming to employment contracts. Non-compete clauses will no longer be allowed for workers earning under $175,000 per year.

A non-compete clause is when an employee agrees not to work for a competitor after leaving your business.

The government believes this change will improve job flexibility and help workers move between jobs more easily.

What you need to do:
Review your employment contracts and remove any non-compete clauses that will soon be banned.

If your business is in construction or trades, there is more support to help hire and train workers. The government is spending over $600 million to help with apprenticeships in construction and clean energy.

This could mean wage subsidies or extra training support for your business.

Rural businesses in these areas will benefit from $45 million in funding to help improve exports, manage food supply, and strengthen the supply chain.

If you’re in one of these sectors, speak with a small business accounting professional to understand what support you can access.

Over $200 million will go toward modernising government systems like ASIC and the Business Register. This should make business reporting easier in the future.

It also means stricter enforcement on:

• Director ID rules
• Accurate business information
• Digital reporting

Tip: Make sure your records are current and your business is properly registered. If needed, RV Advisory can assist with business ABN registration, GST Return Filing, GST preparation, and ongoing compliance.

There are lots of useful changes in this budget, especially for small businesses. Here’s how to make the most of them:

• Plan purchases under $20,000 to use the instant asset write-off
• Check if you can get energy upgrade grants
• Review employee contracts and remove any banned clauses
• Ensure you meet all ATO and Director ID requirements
• Watch for new training and apprentice support if you’re in construction

These steps can help reduce your costs, improve your cash flow, and keep you compliant with the latest rules.

The 2025–26 Federal Budget includes several updates that could impact your business. Whether it’s understanding the extended asset write-off, energy upgrade grants, or compliance changes, expert advice can help you take full advantage.

RV Advisory Group offers personalised Accounting Services for business owners who need clarity and support. From tax accounting and small business tax advice to GST preparation and TFN registration, we’re here to simplify the complex.

If you’re unsure how these changes affect your individual tax return or need help reviewing your business structure, speak to a trusted Tax Advisor today. As a registered tax agent, we help businesses stay compliant and plan ahead with confidence.

Call 0420 661 881
Email reetika@rvag.com.au

Let’s make the most of the 2025–26 Budget—together.